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Shawn you will need something like a 2.93 LSD. I9 am pulling apart a running 88 325es which has one. Let me know if you are interested. You can email me from Max, I will receive the email on my Black Berry.

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SPEED AND POWER IS NOTHING WITHOUT CONTROL,
THANK HITLER, BMW HAS ALL THREE

Guys look at the engine tranny combo he has, the gearing is quite a bit lower than that compared to an m20 with Getrag 260. The 2.93 in the 325 es is not rocket fast but with the added torque out of the 2.7 super eta it's not bad.
If he is getting 110k @ 4K RPM and he wants lower RPM on the highway, the 3.25 will not do too much better than the 3.73 he has now IMO.

I was giving him advice based on the m52/m3 tranny and his need for lower RPM on the highway. With that much torque out of the m52 and gearing from the m3 tranny the 2.93 might be a good combo, however thats my opinion

__________________
SPEED AND POWER IS NOTHING WITHOUT CONTROL,
THANK HITLER, BMW HAS ALL THREE

Keep in mind too (no one thinks about this) that E30's have smaller rolling diameters. A 3.15 in an E36 M3 on 245/40/17 rears is like a 3.02 in an E30 on stock tires. A 2.93 in an E36 is like a 3.05 in an E30.

I'd probably run a 2.93 with an M52. That thing doesn't really do much more when you rev it, might as well get better mileage.